Wanting some exposure to the tech sector? If you are, then it could be worth hearing about the two ASX tech stocks listed below that Goldman Sachs rates as buys.
Here's what the broker is saying about these buy-rated stocks:
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Macquarie Technology Group Ltd (ASX: MAQ)
The first ASX tech stock that Goldman says investors should buy is Macquarie Technology. It is a leading Australian data centre, telco, and cloud services company.
The broker believes the company is well-placed for growth and sees its valuation as attractive at current levels. It said:
MAQ is poised to demonstrate the acceleration of its data centre growth pipeline through 2024, both from IC3W (now DA approved and underway, with potential to be upsized from 38MW to 45MW) and a new site in the Sydney metro area. The core Cloud Services / Telco businesses are performing well in the interim, and valuation remains compelling relative to listed peers.
The broker has a buy rating and $93.00 price target on its shares. This implies potential upside of 18% for investors.
Readytech Holdings Ltd (ASX: RDY)
Another ASX tech stock that Goldman is feeling positive on its enterprise software provider Readytech.
It highlights that the company's margins have just hit an inflection point and believes this will lead to its earnings outperforming the market's expectations. The broker explains:
RDY slightly pushed out its revenue targets, though we highlight that the 1H24 miss was driven by lumpy implementation revenue as subscription continued to grow at a mid-high teens rate. The margin inflection point has arrived and we see material upside to both Visible Alpha Consensus Data estimates and valuation upon execution towards mid-term targets.
Goldman has a buy rating and $4.25 price target on its shares. This suggests upside of almost 30% is possible over the next 12 months.
